Check Before You Invest : ISL Consulting Ltd

BSE: 511609 NSE: ISIN: INE569B01022

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does ISL Consulting Ltd belong to?

ISL Consulting Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is ISL Consulting Ltd a good quality company?

ISL Consulting Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is ISL Consulting Ltd undervalued or overvalued?

ISL Consulting Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is ISL Consulting Ltd a good buy now?

ISL Consulting Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of ISL Consulting Ltd?

ISL Consulting Ltd Operating Income growth is 0.74% for FY-2025, which is above its 5-year CAGR of -2.87%, indicating faster growth.

Q.2 Return on Assets of ISL Consulting Ltd?

ISL Consulting Ltd Return on Asset is -12.3%, which is below its 5-year historical median of 1.4%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	-7.05	0.99
PPOP%	-143.77	-147.37
RoA%	-12.3	1.4

Q.3 Return on Equity (ROE) of ISL Consulting Ltd?

ISL Consulting Ltd Return on Equity is -12.5% for FY-2025, which is below its 5-year historical median of 1.4%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of ISL Consulting Ltd?

ISL Consulting Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -143.77% for FY-2025, which is above its 5-year median(-147.37%), indicating increasing margins.

Q.5 Net Profit Margin of ISL Consulting Ltd?

ISL Consulting Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is -7.05% for FY-2025, which is below its 5-year median( 0.99%), indicating decreasing margins.

Q.6 Total Asset growth of ISL Consulting Ltd?

ISL Consulting Ltd Total Asset growth is -16.42% for FY-2025, which is below its 5-year CAGR of 3.4%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of ISL Consulting Ltd?

Promoters hold 60.06% of the ISL Consulting Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of ISL Consulting Ltd vs Industry Peers?

ISL Consulting Ltd AUM CAGR is 3.4%, compared to the 5-year industry median CAGR of 9.45%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of ISL Consulting Ltd vs industry peers

ISL Consulting Ltd profit metrics are in line with the industry median level of -0.85%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	-7.05	9.95
PPOP%	-143.77	-13.31
RoA%	-12.3	0.8

Q.3 Operating efficiency of ISL Consulting Ltd vs industry peers?

ISL Consulting Ltd ROCE (11.9) is above the industry median of (1.9); while the current ROE (1.4) are above than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	-7.05	9.95
PPOP%	-143.77	-13.31
RoA%	-12.3	0.8
ROCE%	-12.5	1.9
ROE%	-12.5	1.2

Valuation & price assessment

Q.1 Stock return of ISL Consulting Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 8.4% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	8.4%	11.8%	-5.9%	-21.2%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	47.98	33.72
Price to Book	3.57	4.46	0.94
Price to Sales	3.96	6.21	12.44
EV to EBITDA	-53.59	19.07	9.97

Q.4 Valuation ratios of ISL Consulting Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 3.57% is lower than its historical median of 4.46%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

ISL Consulting Ltd return on invested capital (ROIC) is -12.48% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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